Starts Calibrate After Strong Growth in May
BOSTON, MA — July 21, 2026 — Total construction starts declined 19.9% in June to a seasonally adjusted annual rate of $1.42 trillion, according to Dodge Construction Network. Nonresidential building starts fell back 9.1%, nonbuilding starts decreased 37.7%, and residential starts decreased 2.2% over the month. On a year-to-date basis, total construction starts were up 11.1% through June. Nonresidential starts were up 6.2%, nonbuilding starts improved by 33.8%, and residential starts were down 3.5% over the same period. For the 12 months ending June 2026, total construction starts were up 10.6% from the 12 months ending June 2025. Residential starts were down 3.6%, nonresidential starts were up 4.9% and nonbuilding starts were up 34.3%.
“After strong megaproject activity in May, construction starts came back down to earth throughout the month of June,” stated Sarah Martin, Director of Economic Research at Dodge Construction Network. “Residential and institutional construction remain weak, while commercial, industrial and nonbuilding construction continue to show strong year-to-date growth.”
Nonresidential
Nonresidential building starts receded 9.1% in June to a seasonally adjusted annual rate of $584 billion. Commercial starts were up 1.2% over the month, driven by a 29.5% m/m increase in parking garages, alongside growth in warehouses (+15.0% m/m), hotels (+8.1% m/m) and retail stores (+3.2% m/m). Offices and data centers, meanwhile, pulled back 3.7% m/m. Institutional starts improved 2.5% over the month, supported by an 8.0% m/m uptick in education and dormitory starts, as well as a 32.9% m/m gain in other institutional starts. Healthcare facilities fell back 29.9% in June. Manufacturing construction starts declined 62.9% m/m, normalizing after a surge in activity in May. On a year-to-date basis through June, nonresidential starts are up 6.2%. Commercial and industrial construction gained 17.9%, while institutional starts are down 7.3% over the same period.
For the 12 months ending June 2026, total nonresidential starts were up 4.9% compared to the 12 months ending June 2025. Commercial starts were up 28.0%, institutional starts decreased 6.8%, and manufacturing starts were down 22.6% over the same period.
The largest nonresidential building projects to break ground in June were the $3.6 billion Delta Forge 1 Hyperscale Data Center Campus in Boyce, Louisiana, the $2.1 billion Sentinel Midstream Deepwater Port in Freeport, Texas, and the $2.0 billion AWS Data Center (Phase 2) in Canton, Mississippi.
Nonbuilding
Nonbuilding construction starts fell back 37.7% in June to a seasonally adjusted annual rate of $473 billion. After triple digit gains last month, highway and bridge starts fell back 46.6% in June and utilities declined 70.3%. Meanwhile, environmental public works improved 26.3% m/m and miscellaneous nonbuilding surged 168.3% over the same period. On a year-to-date basis through June, nonbuilding construction was up 33.8% alongside the 119.6% year-to-date growth in electric power/utilities, 17.0% in miscellaneous nonbuilding, and 10.8% growth in highways and bridges. Environmental public works are down 5.5% year-to-date.
For the 12 months ending June 2026, total nonbuilding starts were up 34.3%. Environmental public works fell by 4.8% compared to the 12 months ending June 2025. Highway and bridge starts were up 7.8%, miscellaneous nonbuilding starts were up 36.2% and utility/gas starts increased 122.2% over the same period.
The largest nonbuilding projects to break ground in June included the $3.6 billion CTA Red Line Extension Project in Chicago, Illinois, the $2.4 billion Cleveland Browns Huntington Bank Field Stadium in Brook Park, Ohio, and the $2.1 billion Amtrak Sawtooth Bridge Replacement in Kearny, New Jersey.
Residential
Residential building starts fell by 2.2% in June to a seasonally adjusted annual rate of $363 billion. Single family starts fell 3.4% m/m, and multifamily starts fell 0.4% m/m. On a year-to-date basis, residential starts are down 3.5%, with single family starts down 7.5% and multifamily starts up 3.7%.
For the 12 months ending June 2026, total residential starts fell 3.6%. Single family starts fell 11.8% compared to the 12 months ending June 2025, and multifamily starts increased 11.8% over the same period.
The largest multifamily structures to break ground in June were the $480 million 1740 Broadway residential conversion in New York, New York, the $251 million River Commons Residential and Community Facility in Concourse, New York, and the $191 million 40 Exchange Place residential conversion in New York, New York.
Regionally, total construction starts in June fell in every region except the Midwest; the Northeast (-13.9% m/m), the South Atlantic (-32.7% m/m), the South Central (-33.5% m/m), and the West (-4.7% m/m). The Midwest improved by 3.0% between May and June.
JUNE 2026 CONSTRUCTION STARTS
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Media Contact: Alyssa Orender | Dodge Construction Network | pr@construction.com
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